Dr. Vogel says that Amazon is a tech company doing retail not a retail company dabbling in technology as most would believe.
He refers to the working environment at Amazon to be in "two pizza teams". I loved the phrase! A team consists of only as many people as it would take to share 2 pizzas, in other words, teams of 8-10. Members of this team see projects through start to finish, "you build it, you run it".
Cloud Services came about as a result of customers and developers and businesses wanting the following:
1. Design for flexibility
Engineers can use whatever platform they want
Many platforms available
2. Design for On - Demand markets
Capacity needed more for Christmas time sales, etc.
3. Design for Automation - developers can design automation of any service
4. Be elastic - creating programs and services to deal with seasonal peaks and still be able to go back to original design when necessary
5. Design for Failure
6. Design for utility pricing - know that a customer can walk away anytime so businesses can be competitive.
7. Break transparency - if you are an end user of webmail, you don't care where the servers are but if you are a developer you will care so Amazon must break transparency.
8. Decompose in its simplest form - infinitely scalable relational database.
9. Design with security fence.
10. Don’t do it alone - invited 3rd parties to sell their own products and services. Let other sites drive sales to amazon and give them a cut.
11. Focus on what does not change - innovation can also be knowing what things should not change. Having easily readable catalogs, offer low pricing, offer on time delivery, etc. I thought this point was excellent. People always seem to focus on what to change and not look at what they shouldn't change.
12. Let your customers benefit - Amazon has lowered their prices 14 times (Aws services).
13. Continuously Innovate - Amazon has done a brilliant job in creating new products and services for their customers and tweaking established products based on customer demands.
To hear Dr. Vogels full presentations, visit http://passionmeetsmomentum.com/#amazon-and-the-lean-cloud
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